Hedging the Aging Society: Challenges to the Insurance Market and Law in Singapore

The greying of society has become a significant problem in Singapore and many parts of Asia, putting great financial pressure on various aspects of the economy, including the insurance and pension markets. In this article, we generally examine certain key aspect of legal infrastructure in Singapore to see if insurance law and financial regulations in Singapore is well equipped to cope with potential problems from an aging society in the near future. In addition to conventional insurance products, we also explore other ways to hedge the so-called ‘longevity risk’ by alternative risk management products in both the wholesale and retail markets. In short, we suggest that Singapore has offered a solid framework to allow the market to develop new insurance or derivative products to address longevity risk. However, there remains some legal uncertainties to new financial products and Singapore’s insurance contract law could be more consumer-friendly to help customers to claim money in the future.